The high street giant said full-price sales in the 54 days to December 24 increased 1.5 per cent, ahead of expectations. Part of the improvement, the company said, was down to much colder weather leading up to Christmas. Next saw online sales jump 13.6 per cent in the period, helping mitigate a 6.1 per cent decline in high street sales. As a result, Next has increased its full-year profit guidance by £8m to £725m, although the figure is still a long way off last year’s £790.2m. The trading update will come as a relief to the retailer, which has been hammered by rising costs linked to the Brexit-battered pound and the resultant collapse in consumer confidence. “Many of the challenges we faced last year look set to continue into the year ahead. “Subdued consumer demand driven by a decline in real income, the increase in experiential spending at the expense of clothing, and inflation in our cost prices remain challenges for 2018,” Next said.

Chief executive Lord Simon Wolfson - a prominent Leave campaigner - has already said that cautious consumers were only buying “as and when they need” as trading remains “extremely volatile”. However, the firm added that it believes “some of these headwinds will ease” through 2018, with inflation falling to 2 per cent in the first half and disappearing in the second. The retailer expects total full-price sales this year to nudge up 0.3 per cent, rising to 1 per cent next year. Next is the first in a long list of sector peers due to report on Christmas trading in the coming weeks, with experts predicting that some firms could have to issue profit warnings.